US President Donald Trump’s proposed tariffs aimed at products made in China, where most iPhones are assembled, could likely make iPhones expensive for Americans. The new 104 per cent import duty announced could likely raise Apple’s costs by about 43 per cent, according to analysts. And, if these are passed on to consumers, the top-of-the-line iPhone 16 Pro Max, which is priced at $1600, could gallop to around $2300.
Foxconn, Apple’s top supplier, based in China, is known for its harsh labour conditions and wages as low as $4 an hour. In case Apple moved its manufacturing to the US, experts claim that this could lead to three times the cost of an iPhone.
iPhones have been assembled in China to keep the prices low; even if Apple is forced to relocate elsewhere, that strategy too would be under severe pressure. This is because Trump’s new tariffs also target parts made in India and Vietnam, two nations that supply several iPhone components. India and Vietnam have been slapped with 26 per cent and 46 per cent tariffs, respectively.
Reportedly, iPhone accounts for 51 per cent of Apple’s revenue, and the US is its largest market. However, the latest trade restrictions could likely cost the company $40 billion, which is about a third of its operating profit. Several unconfirmed reports claim that the Cupertino-based tech giant is considering moving production to India or Brazil. Regardless, the ongoing uncertainty around the US trade policy is increasingly making it difficult for Apple and other global companies to make long-term plans.
How will the iPhone 16 Pro Max be priced in India?
As of now, the iPhone 16 Pro Max is priced at Rs 1,44,900 for the 256GB model. In case the proposed tariffs are implemented, numerous analysts have predicted that the prices in the US for the device will increase by over 30 per cent, raising the price from $1,199 to around $1,550. Although these tariffs will directly impact US imports, their impact on Indian prices is less certain. India has its import duties on smartphones, and there are factors such as local manufacturing and currency exchange rates that play a key role in pricing. Currently, it is unclear whether the tariffs would lead to a similar price hike in India.
The smartphone giant has been increasing iPhone production in India to counter the impact of tariffs and reduce reliance on Chinese manufacturing. This may stabilise or even lower the prices of iPhones in India over time. In essence, while tariffs may significantly increase the price of iPhones in the US, their impact on Indian pricing remains uncertain due to various factors and Apple’s overall production strategies.
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